Should You Set Up a Fulfilment by Amazon Business?

During the pandemic, furlough and lay offs spurred many people into starting their own business just to survive. However, becoming a business owner and enjoying the freedom that this allows has made more people take on the challenge. Especially as the cost-of-living crisis continues and prices go up, methods to make a little extra money are greatly sought after. If the idea of starting your own side hustle, particularly by starting a fulfilment by Amazon business, feels a little daunting and overwhelming, it’s time to do some research to see if it’s an option for you.

What is Fulfilment by Amazon?

Tools like Amazon FBA are making it easier than ever to earn a passive income with minimal effort and investment. Sounds good so far! By using the Amazon fulfilment business model, you can use Amazon’s own distribution network and customer base to grow your own business. Amazon will provide the warehousing for your products, the fulfilment of your orders, and even provide customer service. This kind of working model is proving to be very attractive to individual that desire a good life/work balance. 

The Steps to Setting Up a Fulfilment by Amazon Business

The two most basic steps to setting up an FBA business are to set yourself up as a seller, and find something to sell.

Signing up to be a seller on Amazon is quite straightforward, and you can even set yourself up as an individual seller which doesn’t come with any monthly charge. With this type of business, you will only be charged a small fee when you sell an item, which can be a good way to test the water and see how it goes. Additional fees come later on in the fulfilment stage, depending on the weight and dimensions of a product. You will also need to cover the costs of the storage fee which is dependent on the amount of space you need at the Amazon fulfilment center. The revenue calculator on the Amazon website will help you work out the best set up to get you the best profit.

Next, you need something to sell. It’s important to do research on the products that are going to sell well, so that you don’t waste your money on unprofitable products. It will take some time, but by doing competitive analysis, looking into product reviews, and finding something that you can sell for better or for cheaper, you’ll be glad you put the effort in.

The Pros and Cons of a Fulfilment by Amazon Business

The Pros

– Instead of needing to figure out the logistics of getting products to your customers quickly, an FBA Amazon business means that Amazon prime members will get their order in as little as 1 or 2 days.

– Rather than dealing with the inventory and listing of new products, all you need to do is ship the products to an Amazon warehouse and the rest of the work will be done by them. This means you can increase your product offerings and inventory with little effort, time, or stress.


– Fulfilment by Amazon may sound handy, but it’s certainly not free. You will need some cash in hand to invest in starting up this kind of business, and not everyone has the money to do so right now.

– While using Amazons warehousing may sound like a very convenient solution, it can end up being a costly one. If you have items that sit a little longer in storage, the costs can become a deal breaker. If something isn’t selling quickly, Amazon will be reluctant to store it and as such they’ll bill you for keeping hold of them.

Tips For Growing Your Fulfilment By Amazon Business

Use technological tools to make your life easier. The whole point of a side hustle is to make you some money without taking up too much time. With this in mind, use every available tool you can to make the job simpler and sales run smoother. Implementing things like Amazon audit services will go a long way in making things less stressful and time-consuming.

Channel your passion. When researching a product find something that excites you. When you enjoy what you do and have a passion for what you sell, you’re going to be more likely to stick at it even when challenges arise.

Increase the number of products you offer. With enough research, you will be able to find other products to sell in order to expand your offerings. The more you sell, the less risks you have. If your business is dependent on just one product, you’ll have put all your eggs in one basket and that’s not the safest business strategy to implement.

Put some work into your own website. Don’t just rely on selling with Amazon, but as you expand your products, build a professional, dedicated website for your business. This will provide you with another platform to both market and sell your products to potential buyers and customers.

Final Thoughts

While owning a business is not for everyone, the modern technologies available are making it easier than ever. With the right product, some investment money, a little bit of technical knowledge, you can set up a successful and profitable fulfilled by Amazon business. The flexibility that this bring is amazing, and the opportunities it creates to be able to make money on the side is more valuable than ever. However, by implementing some of the tips suggested, and by doing research into the options yourself, an FBA business can become much more than just a side hustle!